Think realty prices will fall? Get real!

Builders in the city have made it clear that those who are delaying buying real estate in the hope that prices would come down in the near future are likely to end up disappointed. Developers like Mayur Shah of Marathon Group and vice-president of MCHI-CREDAI and Bandish Ajmera of Ajmera Group and president of MCHI-CREDAI’s Kalyan unit didn’t dawdle while making the aforementioned statements.

Dear estate: Builders say that dearth of land in Mumbai is leading to shortage in supply of homes, thus inflating prices. Representation Pic

“Real estate rates won’t come down. The best-case scenario for potential buyers is that prices may stabilise. There’s a mismatch in supply and demand, so people who have been waiting for prices to come down should think again. Land values fixed by government and semi-government bodies are so high that it’s impossible for us to slash rates,” said Shah.

According to builders, infrastructure here isn’t sound enough to effectively connect the extended suburbs to the main city, and dearth of land in Mumbai is leading to shortage in supply of homes, thus inflating prices.

Ajmera pointed out that even in extended suburbs like Kalyan, landowners and farmers don’t give plots cheap. “Farmers sell land to builders at prevailing market prices. So, when we get plots at steep costs, selling flats cheap isn’t an option,” he told MiD DAY.

Builders also deny reports that sales of flats have dipped. “Figures from registration offices don’t show the correct picture, because a person who purchases an apartment now registers it only after three to four months,” said Shah.

Many developers are optimistic that in the coming days more buyers will invest in projects and discounts being offered by banks in the interest rates would boost sales.